In an economy where a unit of labour can produce either 1 unit of x or 4 units of y (or any linear combination of the two) and a unit of capital can produce either 4 units of x or 1 unit of y (or any linear combination of the two). There are 100 units of each means of production. Suppose now that the discovery of new production technologies allowed the production of both x and y by using only one of the two means of production (without a change in their respective productivity).
a) What will be the production possibility curve?
b) What will now be the opportunity cost of producing 50 units of x?
c) Will it change if we produced 90 units of x?